PATRIOT NATIONAL BANCORP INC [PNBK] Filings

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

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FORM 10-Q

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☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended September 30, 2022

 

OR

 

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from             to          

 

Commission file number 000-29599

 

PATRIOT NATIONAL BANCORP, INC.

 

(Exact name of registrant as specified in its charter)

 

Connecticut		06-1559137
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
900 Bedford Street, Stamford, Connecticut		06901
(Address of principal executive offices)		(Zip Code)

(203) 252-5900

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock		PNBK		NASDAQ Global Market

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes   ☒    No ☐

 

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes ☒    No   ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act

 

Large accelerated filer		☐		Accelerated filer		☐
Non-accelerated filer		☒		Smaller reporting company		☒
Emerging growth company		☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes   ☐    No ☒

 

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS: 

 

Indicate by check mark whether the registrant has filed all documents and reports to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.    Yes   ☐    No   ☐ 

 

APPLICABLE ONLY TO CORPORATE ISSUERS:

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

 

As of November 14, 2022, there were 3,957,269 shares of the registrant’s common stock outstanding.

 

Table of Contents

 

Table of Contents				2
PART I- FINANCIAL INFORMATION				3
	Item 1: Consolidated Financial Statements			3
		Consolidated Balance Sheets (Unaudited)		3
		Consolidated Statements of Operations (Unaudited)		4
		Consolidated Statements of Comprehensive Income (Loss) (Unaudited)		5
		Consolidated Statements of Shareholder's Equity (Unaudited)		6
		Consolidated Statements of Cash Flows (Unaudited)		8
		Notes to Consolidated Financial Statements (Unaudited)		10
	Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations			41
	Item 3: Quantitative and Qualitative Disclosures about Market Risk			54
	Item 4: Disclosure Controls and Procedures			56
PART II - OTHER INFORMATION				57
	Item 1:		Legal Proceedings	57
	Item 5:		Other Information	57
	Item 6:		Exhibits	58
	SIGNATURES			58

     

 

		September 30, 2022				December 31, 2021
(In thousands, except share data)		Unaudited
Assets
Cash and due from banks:
Noninterest bearing deposits and cash		$	4,319			$	3,264
Interest bearing deposits			26,865				43,781
Total cash and cash equivalents			31,184				47,045
Investment securities:
Available-for-sale securities, at fair value			85,917				94,341
Other investments, at cost			4,450				4,450
Total investment securities			90,367				98,791
Federal Reserve Bank stock, at cost			2,671				2,843
Federal Home Loan Bank stock, at cost			5,474				4,184
Loans receivable (net of allowance for loan losses: 2022: $9,952 and 2021: $9,905)			852,918				729,583
Loans held for sale			8,748				3,129
Accrued interest and dividends receivable			6,504				5,822
Premises and equipment, net			30,861				31,500
Deferred tax asset			16,057				12,146
Goodwill			1,107				1,107
Core deposit intangible, net			261				296
Other assets			12,839				12,035
Total assets		$	1,058,991			$	948,481
Liabilities
Deposits:
Noninterest bearing deposits		$	247,704			$	226,713
Interest bearing deposits			586,691				521,849
Total deposits			834,395				748,562
Federal Home Loan Bank and correspondent bank borrowings			125,000				90,000
Senior notes, net			12,000				12,000
Subordinated debt, net			9,832				9,811
Junior subordinated debt owed to unconsolidated trust, net			8,125				8,119
Note payable			637				791
Advances from borrowers for taxes and insurance			2,262				1,101
Accrued expenses and other liabilities			8,736				10,753
Total liabilities			1,000,987				881,137
Commitments and Contingencies
Shareholders' equity
Preferred stock, no par value; 1,000,000 shares authorized, no shares issued and outstanding			-				-
Common stock, $.01 par value, 100,000,000 shares authorized; As of September 30, 2022: 4,031,010 shares issued; 3,957,269 shares outstanding; As of December 31, 2021: 4,030,233 shares issued; 3,956,492 shares outstanding.			106,542				106,479
Accumulated deficit			(33,107	)			(37,498	)
Accumulated other comprehensive loss			(15,431	)			(1,637	)
Total shareholders' equity			58,004				67,344
Total liabilities and shareholders' equity		$	1,058,991			$	948,481